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Equity Levy Act

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The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
REPUBLIC OF ZAMBIA
THE EQUITY LEVY ACT
CHAPTER 338 OF THE LAWS OF ZAMBIA
CHAPTER 338 THE EQUITY LEVY ACT
THE EQUITY LEVY ACT
ARRANGEMENT OF SECTIONS
Section
1. Short title and commencement
2. Interpretation
3. Functions and powers of Commissioner-General
4. Equity levy
4A. Exemptions
5. Payment of equity levy
6. Penalty for late payment
7. Recovery, etc. of equity levy
8. Offences
9. Regulations
CHAPTER 338
EQUITY LEVY 11 of 1982
8 of 1983
10 of 1985

y levy
6. Penalty for late payment
7. Recovery, etc. of equity levy
8. Offences
9. Regulations
CHAPTER 338
EQUITY LEVY 11 of 1982
8 of 1983
10 of 1985

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
An Act to provide for payment by parastatal companies of equity levy instead of
income tax where the tax chargeable under the Income Tax Act is of a lesser
amount than the equity levy; and to provide for matters connected with or
incidental to the foregoing. [8th April, 1982]
1. This Act may be cited as the Equity Levy Act, and shall be deemed to have
come into operation on the 1st April, 1981. Short title and
commencement
2. (1) In this Act, unless the context otherwise requires-
"charge year" shall have the meaning ascribed thereto in the Income Tax Act;
"Commissioner-General" means the Commissioner-General appointed under the
provisions of the Zambia Revenue Authority Act;
"equity" means such portion of the share capital of any parastatal company as
relates to the shares held directly or beneficially by the Government;
"equity levy" means the levy referred to in section four;
"parastatal company" means a company registered under the Companies Act in
which the Government holds, directly or beneficially, fifty per centum or
more shares. Interpretation
Cap. 323
Cap. 321
Cap.

nder the Companies Act in
which the Government holds, directly or beneficially, fifty per centum or
more shares. Interpretation
Cap. 323
Cap. 321
Cap.

388
(2) Unless the context otherwise requires, words and expressions not defined in this
Act but defined in the Income Tax Act shall, in this Act, have the meaning assigned
thereto in the Income Tax Act. Cap. 323
Cap. 323
3. The Commissioner-General shall, subject to the directions of the Minister, be
responsible for giving effect to the provisions of this Act, and shall for that purpose have
all the powers conferred on the Commissioner-General by the Income Tax Act. Functions and powers
of
Commissioner-General
Cap. 323
4. (1) In respect of each charge year, every parastatal company shall, in the return
of income furnished under section forty-six of the Income Tax Act, include-
Equity levy
Cap. 323
(a) a description of its capital structure;
(b) a description of the shares held directly or beneficially by the Government in
such parastatal company and the nominal value thereof; and
(c) a statement of the equity levy payable in accordance with sub-section (2). (2) There shall be charged, in respect of each charge year, an equity levy at the rate
of one and one-half per centum of the equity in every parastatal company:

shall be charged, in respect of each charge year, an equity levy at the rate
of one and one-half per centum of the equity in every parastatal company:

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
Provided that where a holding parastatal company holds equity in an operating
parastatal company, then equity levy in respect of such equity shall be payable only by the
operating parastatal company, and any holding parastatal company by (or through) which
such equity is held shall not be liable to equity levy thereon. (3) Notwithstanding sub-section (2), no equity levy shall be payable if the
Commissioner-General is satisfied that the amount of income tax payable under the
Income Tax Act by a parastatal company for any charge year is greater than the equity
levy payable by it for the same charge year or that the operation of sub-section (2) would
be detrimental to a parastatal company's operations. Cap. 323
(4) No equity levy shall be payable by a parastatal company-
(a) before the date of commencement of commercial operations; or
(b) after the cessation of commercial operations.

be payable by a parastatal company-
(a) before the date of commencement of commercial operations; or
(b) after the cessation of commercial operations.

(5) In this section "commercial operations" includes all business activities, lending or
borrowing of money, receiving or paying of dividends or any similar activity carried on as
the main object or as one of the main objects for which the parastatal company was
incorporated; but does not include "exploration activities" in the case of a parastatal
company engaged in mining or exploration with a view to winning or discovering new
minerals. (As amended by Acts 8 of 1983 and 10 of 1985)
4A. The Minister may, by statutory instrument, exempt any parastatal company
from the payment of equity levy. (As amended by Act No. 8 of 1983)
Exemptions
5. Equity levy shall be paid and shall become due and payable on the 31st July of
the year following the charge year to which it relates, or within such longer period as the
Commissioner-General may, in his discretion, allow generally or in relation to any
particular case. Payment of equity levy
6.

uch longer period as the
Commissioner-General may, in his discretion, allow generally or in relation to any
particular case. Payment of equity levy
6.

Where any amount of the equity levy is not paid within the period prescribed by
or allowed under section five, a penalty equal to five per centum of the unpaid amount
shall be charged for each month or part thereof for which the equity levy remains unpaid,
and for the purposes of recovery and collection such penalty shall be deemed to be a part
of the equity levy:
Penalty or late
payment
Provided that the Commissioner-General may, for sufficient cause shown, remit the
whole or any part of the penalty.

uity levy:
Penalty or late
payment
Provided that the Commissioner-General may, for sufficient cause shown, remit the
whole or any part of the penalty.

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
7. Subject to the provisions of this Act, sections sixty-nine, seventy, seventy-nine,
seventy-nine A, seventy-nine B, seventy-nine C, eighty-two B, eighty-three, eighty-four,
eighty-six and ninety-two of the Income Tax Act, shall, mutatis mutandis, apply to the
recovery of the equity levy under this Act. Recovery, etc., of
equity levy
Cap. 323
8. Subject to the provisions of this Act, the provisions of Part X of the Income Tax
Act, relating to contraventions of the provisions of the Income Tax Act and to penalties for
such contraventions shall, mutatis mutandis, apply to the contraventions of this Act, as if a
contravention of any provision of this Act were a contravention of the provisions of the
Income Tax Act. Offences
Cap. 323
Cap. 323
Cap. 323
9. The Minister may, by statutory instrument, make regulations prescribing all
matters which are necessary or expedient for the proper carrying out of the purposes of
this Act. Regulations
SUBSIDIARY LEGISLATION
SECTION 4A-THE EQUITY LEVY (EXEMPTION) O RDER. Statutory Instrument
175 of 1986
Order by the Minister
1.

this Act. Regulations
SUBSIDIARY LEGISLATION
SECTION 4A-THE EQUITY LEVY (EXEMPTION) O RDER. Statutory Instrument
175 of 1986
Order by the Minister
1.

Equity Levy Act

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